Renewable Energy M&A Deals at $30.7bn in Q3 2022; India Leads with 72% Onshore Wind Deals

Renewable energy-related mergers and acquisition (M&A) deal value in Asia Pacific saw an increase by 11% year-on-year in 2022, thereby rising to $19 billion. Increase in onshore wind is a major contributor to this factor.

As per Enerdatics, a research company, India and Australia were at the forefront of the M&A activity. This is primarily attributable to a 72% rise in onshore wind deals to $7.4 billion. This has been led by PE firms, oil firms and large-integrated utilities.

Solar: As far as solar is concerned, India, Vietnam, Australia, and Japan together make up for 73% of M&A activity.

Hero Future Energies, Shell, Sembcorp, JERA and EDP dominated activity in the APAC region, with acquisitions driven by private equity. The M&A activity of firms like BlackRock, KKR, Actis and Partners Group augmented by 60% YoY.

Corporate PPAs: Operational asset-driven deals aided by corporate PPAs saw an increase to more than double YoY in 2022. Demand also increased from C&I customers.

Wind: India and Australia are at the forefront when it comes to wind. The two countries lead with a rise of 72% YoY with deal value at $7.4bn.

The deals entailed corporate takeovers and asset acquisitions. Major buyers included industrial conglomerates and Independent Power Producers such as Iberdrola, JSW Group and ReNew Power .

Offshore wind: In offshore wind too, the volume of deals is constantly gaining momentum. South Korea, Taiwan and Australia account for major activity on this front. Since 2017, the largest offshore wind deal is Ontario Teachers’ $1bn buying of early-stage assets in South Korea from Corio Generation.